Comparing the performance of Blue Chip NFTs with the top cryptocurrencies
Everyone keeps talking about it, but do you really know what NFTs and cryptocurrency are? Read our guide to easily understand the difference between these two.
It’s no secret that the bear market has affected every part of the crypto industry. The attack has seen both the top cryptocurrencies and NFTs drop drastically from their 2021 highs, now trading for a small percentage of that value. However, some have performed better compared to others. In this report, we’ll take a look at both the top NFTs (Blue Chips) and the top cryptocurrencies by market cap and see how well they’ve performed against each other.
Blue Chip NFTs Vs. Top Cryptocurrencies
Speaking of blue-chip NFTs, they’re pretty easy to spot. These are the NFTs that have been able to reach a high value and managed to maintain their value without wild swings. In a sense, they tend to act as the top 10 cryptocurrencies that have had a better chance of retaining their value.
Now, looking at blue chips like Bored Ape Yacht Club (BAYC) and Cryptopunks, they’ve dumped a lot from the top. For example, BAYC is currently trading at $103,000 after peaking above $460,000, representing a 77% drop from its all-time high. Similarly, the price of Cryptopunks has recorded a 75% decline after reaching an average price of around $400,000 to today’s price of just over $100,000.
Others such as Moonbirds and CloneX have suffered even worse, falling 94.6% and 94.1% respectively from their all-time highs. In some cases, many of these collections also saw sales much higher than the average price, which would mean an even higher percentage loss if the highest sales were to be used.
Each blue chip has ATH compared to the current price:
BAYC $468k/$103k
MAYC $112k/$21k
CloneX $85k / $5k
Doodles $65k/$5k
Moonbirds $94k/$5k
Cryptopunks $399k / $101kLesson learned:
There is no such thing as a “blue chip”
Take profits as often as humanly possible
— NFT God (@NFT_GOD) March 26, 2023
Conversely, the top cryptocurrencies in the market appeared to have outperformed. A look at Bitcoin’s current price compared to its all-time high shows a decline of 59.51%, according to data from Messari. Ethereum on the other hand is down 64.19%.
BTC down 59% from November 2021 all-time high | Source: BTCUSD on TradingView.com
Compared to the top 2 NFT collections BAYC and Cryptopunks, the cryptocurrencies are actually doing better in terms of price. There is also the fact that cryptocurrencies are much more liquid compared to NFTs, so their trading volume is much higher.
But when it comes to determining which of these two asset classes will hold their value best into the next bull market, that remains to be seen. Both NFTs and cryptocurrencies did incredibly well in the recent bull market and have many eyes and interest in them.
NFTs are also seeing less participation as the total number of new addresses using NFTs fell from 81,590 at the end of February to below 6,000 addresses at the end of March. Meanwhile, digital assets such as Bitcoin and Ethereum have seen an increase in trading volume and usage.
The number of transactions on the Ethereum network hit a new one-month high, while number of addresses holding over 0.1 BTC on their balance sheet registered a new all-time high, according to data from Glassnode.
